HSBC Asset Management suspended trading on its Turkey ETF in the primary market following an earthquake in the region that has left the Istanbul stock market temporarily closed.
The Borsa Istanbul closed on 8 February for the first time in 24 years, after the index fell 7.1% in the morning, having now fallen 16% since the earthquake struck.
The stock market will remain shut for five business days, with plans to reopen on 15 February.
The earthquake, which is estimated to have caused more than 14,000 deaths in Turkey and over $1bn of damage, hit the country along with neighbouring Syria on 7 February.
In a stock market notice yesterday, HSBC ETFs said that a notice had been issued to shareholders stating that the Turkish exchange had halted trading, due to the triggering of two market-wide circuit breakers in the Turkish equity market.
A spokesperson for HSBC AM explained that following the suspension of the exchange, HSBC AM had suspended primary market trading on Tuesday, when the first circuit break was triggered, before resuming yesterday morning.
It was then suspended on the primary market again when the Borsa Istanbul was suspended yesterday, but remains available on the secondary market.
It is unclear whether rival Turkey ETFs from BlackRock and Amundi have also suspended trading. Both firms have been contacted for comment.
